Disciplined $180 to $190 million development capital budget retains flexibility and targets quick payback opportunitiesForecast average production of 39,000 to 41,000 boe/d, with ability to quickly ramp up capital and volumes should prices strengthenFree funds flow allocated to debt repayment and share buybacks, with forecast free funds flow yield of 25% to 35%Up to 1/3 of total development capital allocated to high-return, rapid payback open hole multi-lateral ("OHML") drilling Calgary, Alberta--(Newsfile ...

Core Insights - Bonterra Energy Corp. announced positive results from its latest Charlie Lake wells, with a combined average 30-day peak rate of 2,650 BOE per day, including 1,100 barrels per day of light crude oil [2][8] - The company has entered into a definitive agreement to acquire an adjacent asset in the Greater Bonanza Area for $15.7 million, which is expected to enhance production and cash flow [4][10] - The preliminary budget for 2026 anticipates production growth of 8% year-over-year, with a capital expenditure range of $75 to $80 million [13][21] Charlie Lake Well Results - Completion operations on two new wells were finished in Q4 2025, achieving peak rates of approximately 1,325 BOE per day per well [8] - The new wells utilized three-mile laterals and increased fracture stimulation intensity compared to previous wells [2] - An additional well is planned for completion in Q1 2026 [2] Strategic Acquisition - The acquisition will increase Bonterra's land holdings in the Greater Bonanza Area by 36% and add approximately 760 BOE per day of production [4][9] - The deal includes 21 top-tier drilling locations and enhances the company's existing infrastructure [9][10] - The acquisition is expected to close before December 31, 2025, and will be funded through the company's revolving credit facility [10] 2026 Preliminary Budget Guidance - The budget aims for an average production of 16,200 to 16,400 BOE per day, with a focus on Charlie Lake and Montney assets [13][21] - Expected funds flow is projected between $105 million to $110 million, with free funds flow of approximately $21 million [14][21] - The budget allocates approximately 60% towards the Charlie Lake core area, 10% towards Montney, and 25% towards Cardium [22] Financial Metrics and Projections - The company anticipates a free funds flow yield of approximately 14% based on a WTI price of $60 per barrel [14][21] - The net debt to last twelve months' EBITDA ratio is expected to be around 1.3x by the end of 2026 [14][23] - Hedges are in place for approximately 31% of expected crude oil and 21% of natural gas production to mitigate market volatility [17]

Core Insights - Saturn Oil & Gas Inc. reported a significant net debt reduction of over $119 million in Q2 2025, achieving a total net debt of $694.8 million, which reflects a 15% decrease compared to Q1 2025 [2][5][6] - The company achieved record free funds flow of $93 million, supporting ongoing financial flexibility and shareholder returns [2][5][9] - Adjusted funds flow for the quarter was $109 million, representing a 23% increase compared to Q2 2024, with a per-share value of $0.56 [5][9][12] Financial Highlights - Petroleum and natural gas sales for Q2 2025 were $236.7 million, compared to $278.1 million in Q1 2025 and $208.9 million in Q2 2024 [8][37] - Cash flow from operating activities was $89.9 million, down from $165.4 million in Q1 2025 but up from $50.5 million in Q2 2024 [8][37] - Adjusted EBITDA totaled $131.7 million, a 24% increase over Q2 2024, resulting in a net debt to annualized quarterly adjusted EBITDA ratio of 1.3x [9][37] Operational Highlights - Average production for Q2 2025 was 40,417 boe/d, exceeding the high end of guidance and reflecting continued asset outperformance [5][15] - Operating costs were reported at $18.28 per boe, which was below the low end of guidance [5][10] - The company successfully repurchased $19.8 million of its Senior Notes at a discount, effectively reducing total liabilities and future interest obligations [6][11] Strategic Initiatives - The Saskatchewan government's elimination of the carbon tax is expected to yield annual operating cost savings of up to $20 million, which can be reinvested into the business [12] - The company has initiated a substantial issuer bid (SIB) to repurchase shares, with a total return to shareholders of approximately $24 million since August 2024 [9][13] - Saturn plans to continue its capital expenditures in Q3 2025, estimated between $80 million and $90 million, focusing on high-return drilling programs and production optimization initiatives [17][18]